First green project in foreclosure - Dayton Business Journal:

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million construction mortgage. The 33,000-square-foot Vive also known as is the first South Florida projecf seeking Leadership in Energy and EnvironmentaDesign (LEED) certification from the U.S. Green Building Councilp to face foreclosure. In an interview, Roman o said the extra cost ofthe building’s green features is not the reasojn it fell into foreclosure. “The fact that the building is a greenj building is not why the building financiallu isin trouble,” Romani said. “It has to do with a failure to properlyu and adequately financially plan the building in the and I blame myselffor that.
” Despited a cost-conscious office-leasing environment, the concept of greenb office buildings is here to according to Christian Lee, vice chairmabn of in Miami, and Vive Verde’s foreclosure is just one entry on a long list of commerciakl foreclosures that will happen regardlessw of whether a building is green. He noted that the more important factorfor Romano’s building will be office demandr in Lake Worth.
“Building greem adds to the cost [of a but in the long run, any green building will be more attractive to an investordbecause it’s already green,” he “Otherwise, new investors would be figuring in the cost to make it because all commercial buildings are goin green.” Rob Hink, a LEED-accredited consultanty with the Weston-based , agrees. “I don’t think this one foreclosurwe on a green building is any commenr on the LEED system orgreen buildings, I think it’z just the economy,” he said.
“I’mn surprised because it’s a leased-up He added that Romano’s largre inner courtyard could have been downsized to fit more rentapl space inthe building, and yet still have retaineds many of the environmental benefits. On May 26, Fort Lee, N.J.-basedf filed the foreclosure action against ViveVerde North, managing member Romano and other parties associated with the project, according to Palm Beach Count y Circuit Court records. The four-story building, at 1005 Lake in Lake Worth, was completedx in August. Its office space is about 70 percentf leased, and it has two empty retail Romano said. The green features of the buildinh work exactly as he he said.
A rooftop garden catchex rainwater, while condensation is collected from the air conditionefr for watering plants and ponds andflushinyg toilets. Grey water is recycled in the water features ofthe atrium. The use of skylights and window cuts down onelectricity usage. Many fixtures were made with recycledf materials. A sign outside advertises it asa “livinfg building.” Inside, goldfish swim throughu a pond and a statue of a Native American bathes in the sunlighr in the garden. Despite the energt and water savings, Vive Verde Nortjh has not made any payments onthe $6.
9 milliomn mortgage this year, said John Hart, an attorney with Carltobn Fields in West Palm Beach who represent s Meecorp in the lawsuit. “My client would like to get but ifthat doesn’t come to they are prepared to take title to the properth and prepare to get paid that way, too,” Hart Vive Verde North has a $4 millionj second mortgage with Williamsville, N.Y.-based , whicnh is named in Meecorp’s complaint. Romanko said his company got behinrd on mortgage payments because it ran out of money and could not get the loan refinanced by atraditionalk bank. “It is making me physicall ill that thisis happening,” he said.
“u will continue to work night and day to make this all work These days, I’m losing a lot of sleepp over it.” He said his plan for the buildingv was flawed from the beginning because he wrotw an incorrect financial plan. He said the constructioj for his first development project came in on budgetg and its utilitiesoperate efficiently. Romano said the greenj features of Vive Verde attractecsome tenants, although severao of them would have signedr leases in the buildinb without them. He is confidenty the building will earnLEED certification, but said that not opening with that designation has not hurt the project. Romanko was aiming for gold-level certification from the U.S.
Green Building Council.